Accruing Wages Payable

If you have employees, chances are you owe them a certain amount of wages at the end of an accounting period. If so, an adjusting entry is required in your general journal.

Example

As an example, on December 31, 2009 you owe your employees one week of salary that will be paid on January 8, 2010. The gross wages for that week are $1,512.00. Make the following general journal entry:


Debit Credit
Wages expense 1,512
Accrued wages
1,512
To accrue wages owed but unpaid on 12/31/2009

Related Resources

Accruing Employer FICA Taxes

Adjusting Entries

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